The Federal Government, through its National Electrification Project (NEP), has brokered a deal with the African Development Bank (AfDB) intended at curbing severe power generation challenges in the country.
The initiative, worth $200 million, seeks private sector involvement in delivering mini-grid and off-grid energy solutions to the rural population.
A statement from the AfDB on Wednesday revealed that the project aimed at achieving universal accessibility to energy through the Rural Electrification Agency (REA) by 2030.
Equivalent to N73.4 billion, the outlay will be provided by a joint financing from the bank and the Africa Growing Together Fund and expand private sector investment in the off-grid energy segment.
It is anticipated that the investment will bring about a favourable business atmosphere that will engender sustainable electricity in the country’s off-grid communities among other things.
Goddy Jedy-Egba, the Minister of State for Power, applauded the AfDB for its financial commitment to the venture while noting its benefits to the populace.
“Imagine the impact a project like the NEP will have when it is replicated across rural communities in the country,” he was quoted as saying during the launch of the project on Tuesday.
The bank’s acting Vice President for Power, Energy, Climate Change and Green Growth, Wale Shonibare, outlined the expected development outcomes of the project.
“Over 500,000 people will have access to approximately 76.5 megawatts of increased installed power of which 68MW will be solar-generated.”
Ebrima Faal, Senior Director for the AfDB in Nigeria, remarked that the NEP, together with other initiatives supported by the bank in Nigeria, were meticulously fashioned to enhance availability of dependable, safe and affordable power services in the country.
“The project is also aligned with the Federal Government of Nigeria’s Rural Electrification Strategy and Implementation Plan and the Power Sector Recovery Programme, which has the objective of increasing private investments in the energy sector,” the statement mentioned.
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